Iolaus Company Provides the Following Data for the Current Year

Iolaus Company provides the following data for the current year:
Estimated Factory Overhead …………………7,800
Factory Overhead Incurred………………… $11,400
Factory Overhead Applied………………… ?
Estimated Direct Labor Cost …………………12,000
Direct Labor Cost Incurred………………… 11,800
Required:
a.Calculate the predetermined overhead allocation rate based on direct labor.
b.Determine the amount of overhead applied to production.
c.Prepare the journal entry to apply factory overhead to goods in process.

Correct Answer:

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(a)$7,800/$12,000 = 65% of Dir...

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